TSB Bank announces record profit before tax of $85.6 million

TSB Bank announces record profit before tax of $85.6 million

New Plymouth, New Zealand - TSB Bank today announced a record pre-tax profit for the 12 months to 31 March 2016 of $85.6 million as a result of the Bank’s continued focus on revenue growth and cost containment.

TSB Bank CEO Kevin Murphy said FY2016 saw the Bank better position itself to compete and build a sustainable financial future while maintaining a strong leadership position in customer satisfaction. “I am pleased with this year’s results. We experienced another year of strong financial performance as a result of our ongoing focus on meeting customers’ needs with desirable products while controlling costs in line with a declining margin.”

Over the last year TSB Bank continued listening to feedback to enhance and expand its products and services to create a better customer experience. The Bank’s deposits increased 8.3% and hit a record high of $5.8 billion. These results can be attributed to the growth strategy of the Bank supported by the launch of a new suite of transactional, savings and investment products.

”We also invested in our people, processes and tools for our business in order to improve our bench strength and better position the Bank for long-term growth," said Mr Murphy. "As a result, our cost to income rate has increased from 39.0% to 46.6% and while we expect this figure may increase over the coming year as we continue to build our capacity, it is forecast to trend back to the low forties thereafter.”

At 14.52% the Bank's Capital Adequacy Ratio continues to be one of the strongest of all New Zealand banks, and is well above the minimum Reserve Bank requirements of 10.5%. “We continue to operate with a well-funded balance sheet and outrank much of the sector in efficiency, without compromising our renowned focus on building our relationships with customers and improving their experience with our products and services,” said Mr Murphy.

The year ahead will be one of further growth and development for TSB Bank, with a strategic focus on enhancing our digital delivery, improving our customers’ experiences and strengthening our networks. “As the industry becomes more competitive, we must stay focused on putting customers’ interests first,” said Mr Murphy. “We look forward to continuing to help New Zealanders get ahead with the goal of making banking really easy for them – every time and everywhere.”

Founded in 1850, TSB Bank has been independent and 100% New Zealand owned since inception. With its head office in New Plymouth, in the heart of beautiful Taranaki, the Bank has 25 locations across New Zealand. The Bank holds an A- credit rating as assigned by Fitch Rating. If you want to see what better banking looks like visit www.tsbbank.co.nz

ENDS

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